UK Private Sector Activity Falls Contracts Further

2026-07-03 09:03 By Andre Joaquim 1 min. read

The S&P Global UK Composite PMI fell to 49.3 in June of 2026 from 49.7 in May, revised from the flash estimate of 49.4 for a second month of contraction following 11 months of expansion in the British private sector activity.

It contrasted with the initial expectations of an expansion at 50.6.

Activity gauges contracted for services (48.8 vs 49.3 in May), outweighing the expansion for that of manufacturing (52.5 vs 53.9).

Total private sector sales fell the most since April 2025 as a decline in services offset growth in manufacturing, even though the latter slowed.

Likewise, backlogs of work increased sharply.

Still, input price inflation eased for a second month as a modest de-escalation in the Middle East eased the upward pressure on energy prices, although cost growth remained above average.

Output charge inflation also softened.

Employment continued to fall at a fast rate, with workers still citing higher National Insurance contributions.

Looking ahead, confidence improved.



News Stream
UK Private Sector Activity Falls Contracts Further
The S&P Global UK Composite PMI fell to 49.3 in June of 2026 from 49.7 in May, revised from the flash estimate of 49.4 for a second month of contraction following 11 months of expansion in the British private sector activity. It contrasted with the initial expectations of an expansion at 50.6. Activity gauges contracted for services (48.8 vs 49.3 in May), outweighing the expansion for that of manufacturing (52.5 vs 53.9). Total private sector sales fell the most since April 2025 as a decline in services offset growth in manufacturing, even though the latter slowed. Likewise, backlogs of work increased sharply. Still, input price inflation eased for a second month as a modest de-escalation in the Middle East eased the upward pressure on energy prices, although cost growth remained above average. Output charge inflation also softened. Employment continued to fall at a fast rate, with workers still citing higher National Insurance contributions. Looking ahead, confidence improved.
2026-07-03
UK Private Sector Activity Falls for 2nd Month
The S&P Global UK Composite PMI eased to 49.4 in June of 2026 from 49.7 in May, a second month of contraction following 11 months of expansion in the British private sector activity, according to a flash estimate. This was below expectations of an expansion at 50.6. Activity fell for services (48.7 vs 49.3 in May), outweighing the faster expansion for goods producers (53.6 vs 52.2). Total private sector sales fell the most since April 2025 as a decline in services offset growth in manufacturing, even though the latter slowed to a six-month low. Likewise, backlogs of work increased the most in seven months. Still, input price inflation eased for a second month as a modest de-escalation in the Middle East eased the upward pressure on energy prices, although cost growth remained above average. Output charge inflation also softened. Employment continued to fall at a fast rate, with workers still citing higher National Insurance contributions.
2026-06-23
UK Private Sector Activity Contracts
The S&P Global UK Composite PMI fell to 49.7 in May of 2026 from 52.6 in the previous month, revised higher from the preliminary estimate of 48.5, reflecting the first decline in activity in one year and firmly below the initial market expectations of an expansion of 51.6. Activity was lower for services providers (49.3 vs 52.7 in April), outweighing the faster expansion for goods producers (53.9 vs 53.7). New business at the aggregate level eased amid uncertainty for clients and weaker investment sentiment. A sharper decline was prevented by an influx of orders for manufacturers as clients attempted to beat price hikes risked by the war in the Middle East. Meanwhile, payroll numbers fell for the 20th month, with firms blaming higher National Insurance contributions for lower labor intake.
2026-06-03